St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1887-09-10

Nj. Sabln, j. Z. OGOrman and the local
attorneys interested in the case, and
Judge William M. McCluer presiding.
The first motion came from j.. Nj.
Flower, representing Porter and Cable,
stockholders Of the ear company, ask
ing the court to permit sshis sGlients to
bring suit against d. NJ Sabin andJ. C.
O'GormaI, as late officers of that con-
Germ, charging them with gross fraud
and miSmanagement of its affairs prior
to the appointment of receiver, in
which that officer was to appear as
party. Mr.. Flower supported his mo-
ton in brief argument, stating that
certain creditors had already brought
similar suit in the United States district
court for the districtof Mipnesota, and
desiring that hisclientS also be allowed
so to do. He presented his owl aft
davit, allegiiig'S AelfmatterS asfradu and
mismanagement, and furtherasked that
the receipts arising from theasuiti liz any,
be exempted from the sale aboit to be
ordered. Twas but Just that the par
ties thus charged should be- permitted
to exOnerate themselves before proper
tribunal. Substantially the same re-
quest was made last Tuesday, when the
attorney asked that thes receiver he or
dered TO bring such suit, which motion
was then and there denied. Mr. Hyde,
representing Eastern creditors, replied
that Mr.. Porter had always enjoyed
three years and one-half time In which
to bring such an action, and that he
now was keeping a man in the East
who was striving to produce a commo-
ton among the creditors, and who
stated repeatedly that Mr.. Porter would
spend half of his fortune to get
EVEN WITH MIR. sABIN.
1t was matter of no interest to himself
and clients what sort of quarrel existed
between MessrS. Porter and Sabin.
They did not care what cause Porter
had to even UP with the senator. They
(the Eastern creditorsl had waited long
and patiently for some return for their
investment, and felt that now they were
justly entitled to relief, anu this he felt
sure the court was willing to allow.
The present motion, coming at this time,
was evidently intended as a measure of
obstruction. The gentleman wanted to
bring suit which he admitted had no
commercial value, with the evident de-
sire to continue the reeeivership indefi-
nitely. He objected to such litigation,
which represented no value, but which
was Intended by obStructing settle
ment to involve the creditors still fur
ther. Their early expectations regard
Ing the settlement of their claims had
come to naught through no fault of the
court. The uncertain tenure Of the re-
ownership and the restrictions of
court all conspire against any hope of
conducting the business to profit. He
wanted the expense stopped, and that if
they were to get anything that they get
1t speedily as possible. If there was no
commercial value in the desired suit as
admitted, such suit should not be per-
mittad Siynp1y q O IN, ttar pf phcfrunfioy,
Judge Pinney, replying, said that the
stockholders did not want to have the
doors all closed against them to pre-
vent the examination of the former
methods of conducting the affairs Of the
car company. If the claim they de-
sired to bring was of any real value
they ought not to be shut out. He
wanted to know If $l50,000 was to be
barred out Of its rights to recover on
account of Mismanagement and fraud.
There would be no expense to the
estate in this suit, no expense in con-
tlnuiHg the receivership. They did not
wanted their rights and were deter
mined to have. them. Judge FIandrau,
replying, said that the most hopeful
view that could possibly be taken Of the
assets would not permit of any divi-
dend being made to the stockholders.
All that was claimed by any one was
that it might satisfy the claims of the
creditors. All that could possibly be
recovered from Messrs. Sabin dS 3O'GOr-
man would not be drop IN the. bucket
towards satisfying these claims of stock
holders. The country had been
FILLED WITH RUstoRs4 ;
at the time of the failure and since
against these gentlemen But the testi-
mr. FOL i'm h0f hoxr nh
that there Was no chance Of recovery
against then, The door is stM open to.
mf. Porter, as 1t has been for over three
years, to recover If he has grounds,
but 1t has been shown that there is no
truth in these rumors. The gentleman
askes that the receiver stand as such
and the same time be party toa suit,
which cannot be done. 1t was all done
to arrest the sale. TWAS only another
finger Of the. same hand playing the
role Of obstruction and designed to de-
lay the sale. Mr.. Flower claimed the
stockholders had right to bring their
suit. The receiver inherlts their rights.
The stockholders have a right to know
what become of their money. The
court took the matter of the new mo-
ton under advisement and pro-
ceeded to deliver his decree
regarding the order for sale.
The court had taken the estate of the
Car company under its charge upon the
application of the creditors to preserve
its value. Its operations could not be
closed without destroying this, 1t is
not in the province of court to con-
tlnue manufacturing or any other
business any further than is absolutely
necessary to protect the interest of its
creditors, and 1t should be got rid of at
prejudicing them. Ali the creditors
now agree to the sale, but differ as to
the proper time of sale. This business
question the court had to determine for
business men. There were two bust
ness seasons with the property in ques-
tion-One for manufacture and one for
sale, The selling season was now prac-
tically, over, and the manufacturing sea
son about to begin. The court deemed
this, therefore, the proper time to sell,
and that the sale be ordered
AS SOON AS PRACTICABLE.
The necessary notice of such sale was
then considered. There would not prob
ably be man lying around loose with
couple Of millions of dollars who would
be attracted to this sale by a published
notice. The one who became the pur-
chaser would be. a party who was al
ready acquainted with the character and
value of the property. Consequently
the six weeks statutory provision of no
tice Of mortgage foreclosure sale was
sufficient. Next, the party to make the
sale. While having the most unbeunded
confidence in the honesty of bis re-
ceiver, who had, without doubt, man
aged the vast property to. the best of his
ability, it was beyond the capacity of
any man to occupy the position of
receiver and at the same time
to conduct the sale. = The court
selected, appoint T referee as asked asked ,who
should be one well versed inlegaI mat
tiers, and who had previously not been
connected in any WAY with the 1irneeed-